Pay-As-You-Drive Insurance

Pay-As-You-Drive (PAYD) insurance is a type of auto insurance that bases your premium on how much you drive, rather than a fixed annual rate. Using telematics devices or other tracking methods, insurers monitor your mileage and driving habits in real-time. If you drive less or safer, your premium decreases, potentially saving money. This approach encourages responsible driving and can be more cost-effective for low-mileage drivers. It provides a personalized premium that reflects actual usage rather than traditional flat rates, aligning insurance costs more closely with individual driving patterns.